Lower demand in most markets outside Europe weighed on Volvo CE’s second quarter 2016 revenues, partially offset by gains in market share in the heavy equipment segment.
Adjusted for currency movements, Volvo Construction Equipment (Volvo CE) reported that its net sales were down 7% in the second quarter of 2016, impacted by lower demand in most markets outside Europe. Weaker machine sales in China and Brazil were partially offset by higher sales in Europe.
Net sales in the second quarter decreased by 12%, amounting to SEK 13,630 M (SEK 15,419 M in Q2 2015). Adjusted for currency movements, net sales were down by 7%. Operating income was 810 M in the period, equating to an operating margin of 5.9% (8.8%).
“The second quarter saw Volvo CE improve operating margin compared to the first quarter, despite continuing weak demand in many markets”, commented Martin Weissburg, president of Volvo Construction Equipment. “It is encouraging to see that the ongoing internal efficiency program continues to deliver results, and that Volvo CE is gaining market share in the heavy segment, particularly in Europe”.